Algoma Central Corporation (“Algoma” or “the Company”) (TSX: ALC), a leading provider of marine transportation services, today announced it has reached an agreement with American Steamship Company (“ASC”) to acquire four vessels.
The Company has acquired the M.V. Buffalo, the M.V. Adam E. Cornelius, the S.S. American Valor and the S.S. American Victory. The availability of these vessels presented an opportunity to expand Algoma’s vessel fleet and capacity at extremely attractive values. Both the M.V. Buffalo and the M.V. Adam E. Cornelius will provide efficient capacity to serve customers in the river-class segment of Algoma’s Domestic Dry Bulk market. Both ships will complement the Company’s existing fleet to ship salt, aggregates, and other commodities. These additions enhance Algoma’s versatility in offering its customers different cargo sizes and vessel configurations to meet their specific needs.
The S.S. American Valor and the S.S. American Victory have the potential to be re-powered as motor vessels, converted to articulated tug barges, or have their forebodies mated with existing modern sterns; however, no immediate plan for these two vessels has been confirmed.
“Delivery of the vessels further solidifies our market position in the river-class segment where we see many opportunities”, said Gregg Ruhl, Chief Operating Officer at Algoma. “We are also working with our labour partners to develop a competitive labour structure for this segment.”
All four ships are former U.S. flag lakers that will be transferred to the Canadian registry for service in the Great Lakes – St. Lawrence trade. The Company’s purchase of these vessels and the on-going delivery of new builds combine to make the Company a leader in the marine industry. This acquisition illustrates Algoma’s innovative approach to the current market and highlights the potential for new growth in the Company.